The US Export-Import Bank (Exim) has approved financial support for Mozambique’s long-delayed liquefied natural gas (LNG) project, despite concerns over human rights violations linked to the venture.
The $20 billion project, led by French multinational TotalEnergies, had been stalled since 2021 due to violent insurgency in northern Mozambique’s Cabo Delgado region. With the recent approval of $5 billion in financing from Exim Bank, the initiative has received a significant boost, potentially reviving operations.
TotalEnergies’ Push for Funding
TotalEnergies, which holds a 26.5% operating stake in the project, had aggressively lobbied for US Exim Bank’s approval, warning that further delays could jeopardize progress. Regulatory filings reveal that the company engaged Primus Responsum LLC to assist in securing the funding, with a contractual fee of $250,000 if the approval came before the US presidential transition.
Human Rights Concerns and Investigations
The project has faced scrutiny over alleged human rights abuses. French authorities recently launched an investigation into TotalEnergies over accusations of involuntary manslaughter and failure to assist people in danger, following claims from subcontractors and families affected by the 2021 Palma massacre.
The massacre, carried out by Islamic State-linked insurgents, resulted in mass killings and displacement of thousands. While TotalEnergies has denied involvement, ongoing extremist attacks continue to pose risks to the project’s viability.
International Scrutiny and Uncertain Future
The project’s instability has drawn global concern. The British government is reportedly seeking legal advice on whether to withdraw its support due to the volatile security situation. Meanwhile, the Dutch government has announced an independent investigation into alleged human rights violations by Mozambican security forces.
Despite these challenges, TotalEnergies CEO Patrick Pouyanne remains optimistic, arguing that financiers will uphold their commitments. However, he acknowledged that the project may not be operational until 2030, at which point it will face stiff competition from LNG exports from Qatar and the US.
With ongoing security threats and international scrutiny, the future of Mozambique’s LNG ambitions remains uncertain.
